COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Hindustan Motors steps up drive to supply Euro-II cars

Rakesh Kumar Dubey in Calcutta

Hindustan Motors Limited, the oldest car manufacturing company in the country, is working on a war-footing to supply Euro-II compliant cars to the market.

Company sources said the move follows the recent directive by the West Bengal government against registration of Euro-unfit cars after April, 2000.

''We have more or less achieved the technology, but I can't tell you right now the exact date when the Euro-II compliant cars would be available in the market,'' a highly placed official said.

He, however, said it would be much earlier than the date fixed by the West Bengal government.

The company was already supplying diesel cars from its Uttarpara unit in West Bengal which fulfil Euro-I standards, he said. ''On an average, we are supplying about 1,500 diesel cars per month at present from the factory,'' he added.

Prior to the state government's directive recently regarding Euro norms, the Supreme Court had also banned registration of any such cars in Delhi.

The apex court's verdict had come as surprise to market leader Maruti Udyog Limited, which, however took urgent steps to supply Euro-I compliant Maruti 800s in Delhi and the West Bengal government's decision had added to its woes.

The MUL's parleys before the West Bengal government to defer its decision by three months was rejected by none other than Chief Minister Jyoti Basu, it was reported.

Incidentally, the Uttarpara unit of HM was not performing to its full capacity of producing around 2,500 cars per month due to ''recession'' and has approached the state government to give permission to reduce workforce. The government declined the request.

However, the company challenged the state government's contention in a court and the matter was pending till date.

The company was recently in news again after its convoy drivers struck work demanding higher wages. The matter was sorted out only yesterday after intervention of the state government.

The beleagured company, which is often accused of not keeping pace with the changing taste and preferences of the customers and as a result of which was now unable to sell more than 2,000 cars a month in an era of stiff competition, has received acknowledgement from the critics for steps taken towards attaining Euro norms.

The HM official, however, could not confirm whether the earth moving equipment division of the company had also achieved the Euro-I standards.

The C K Birla owned company had reported a net loss of Rs 282.5 million during the financial year ended March 31, 1999 while in 1997-98 it had posted a net profit of Rs 393.5 million.

The company has also embarked on a modernisation programme of Rs 750 million for its Uttarpara factory in 1998-99 which was progressing satisfactorily, sources added.

UNI

Business news